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Expert turns tables on Dem critics after Musk accuses Social Security of being 'Ponzi scheme'

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Expert turns tables on Dem critics after Musk accuses Social Security of being 'Ponzi scheme'

Democrats have pushed back after Elon Musk claimed that social security operates like a “Ponzi scheme” as he continues to argue for cuts to the federal bureaucracy, but one expert tells Fox News Digital that Musk is on track with his criticism of the agency.

“Musk’s statement about Social Security being the world’s biggest Ponzi scheme does have validity,” James Agresti, president of the nonprofit research institute Just Facts, told Fox News Digital in response to pushback from Elon Musk’s claim, which included a “false” rating from Politifact. 

“A Ponzi scheme operates by taking money from new investors to pay current investors. That’s the definition given by the SEC, and contrary to popular belief, that’s exactly how Social Security operates.”

Agresti explained to Fox News Digital that Social Security, believed to be a target of Musk’s efforts at DOGE, “doesn’t take our money and save it for us, as many people believe, and then give it to us when we’re older” like many Americans might believe. 

EXPERT REVEALS MASSIVE LEVELS OF WASTE DOGE CAN SLASH FROM ENTITLEMENTS, PET PROJECTS: ‘A LOT OF FAT’

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Just Facts President James Agresti spoke to Fox News Digital about opportunities to cut Social Security. (Fox News/Getty)

“What it does is, it transfers money when we are young and working and paying into Social Security taxes,” Agresti said. “That money, the vast bulk of it, goes immediately out the door to people who are currently receiving benefits. Now there is a trust fund, but in 90 years of operation, that trust fund currently has enough money to fund two years of program operations.”

The trust fund only being able to last for two years is not a result of the fund being “looted,” Agresti explained, but rather it was put in place to “put surpluses in it” from money that Social Security collects in taxes that it doesn’t pay out immediately and pays interest on. 

“The interest that’s been paid on that has been higher than the rate of inflation,” Agresti said. “So, the problem isn’t that the trust fund has been looted. The problem is that Social Security operates like a Ponzi scheme.”

DOGE’S PLANS TO OFFLOAD GOVERNMENT BUILDINGS SUPPORTED BY FORMER GSA OFFICIAL

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Social Security card (Kurt “CyberGuy” Knutsson)

One of the top Social Security criticisms from Republicans, including President Trump, has been a concern that individuals who are dead or listed with an age well over 100 years old are on the rolls and receiving benefits.

Agresti told Fox News Digital that there are legitimate reasons to be concerned about that issue.

“What’s unclear to me at this moment is whether or not the people who are on the books are actually receiving checks,” Agresti said. 

“Back during the Obama administration, there was a stimulus, and the Obama administration sent out stimulus checks via Social Security numbers to 80,000 people who were dead, and about 70,000 of them, the Social Security Administration knew they were dead. So I don’t know if they’ve remedied that situation since then, but clearly the system is not keeping up with the pace of current data, and that provides an opportunity for fraud.”

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Elon Musk listens as President Donald Trump meets with India’s Prime Minister, Narendra Modi, in the Oval Office of the White House, on Thursday, Feb. 13. (AP/Alex Brandon)

Democrats have also made the case that Musk is attempting to strip away benefits that senior citizens have rightfully earned. Agresti told Fox News Digital that is not what is happening.

“There’s been a lot of misinformation about that as of late,” Agresti said. “You know, when DOGE came in and suggested that the Social Security Administration cut, I think it was about 10,000 workers, Democrats erupted that this is going to weaken Social Security. But the fact of the matter is that Social Security pays those workers who are for administrative overhead from the Social Security trust fund. So, by cutting out the money that they’re paying them, you actually strengthen the program financially.”

Agresti told Fox News Digital that the current administrative overhead for Social Security is $6.7 billion per year, which is enough to pay more than 300,000 retirees the average old age benefit.

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Questions have emerged from critics in recent years as to whether Social Security, in its current form, is even capable of remaining solvent to pay benefits to Americans who have paid in over the past few decades.

Agresti told Fox News Digital that the program will “become insolvent” as soon as 2035 if changes are not made. 

“To give you a feel of how disconnected Social Security is from a fully funded pension plan, if to keep the program solvent and put it on the same firm financial footing as a real pension plan, it would require an extra $272,000 in additional payroll taxes from every person paying payroll taxes right now,” Agresti told Fox News Digital. 

“I’ll give you another way in which more numbers prove this point. If you retired in 1980, it took about three years of receiving Social Security benefits to get back the value of your payroll taxes plus interest. If you retired in 2000, it took 17 years. If you retired in 2020. it will take 22 years, assuming the program has enough money to pay those benefits, which it won’t without another increase in taxes on another generation of Americans.”

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Federal judge blocks Trump from cutting childcare funds to Democratic states over fraud concerns

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Federal judge blocks Trump from cutting childcare funds to Democratic states over fraud concerns

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A federal judge Friday temporarily blocked the Trump administration from stopping subsidies on childcare programs in five states, including Minnesota, amid allegations of fraud.

U.S. District Judge Arun Subramanian, a Biden appointee, didn’t rule on the legality of the funding freeze, but said the states had met the legal threshold to maintain the “status quo” on funding for at least two weeks while arguments continue.

On Tuesday, the U.S. Department of Health and Human Services (HHS) said it would withhold funds for programs in five Democratic states over fraud concerns.

The programs include the Child Care and Development Fund, the Temporary Assistance for Needy Families program, and the Social Services Block Grant, all of which help needy families.

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USDA IMMEDIATELY SUSPENDS ALL FEDERAL FUNDING TO MINNESOTA AMID FRAUD INVESTIGATION 

On Tuesday, the U.S. Department of Health and Human Services said it would withhold funds for programs in five Democratic states over fraud concerns. (AP Photo/Jose Luis Magana, File)

“Families who rely on childcare and family assistance programs deserve confidence that these resources are used lawfully and for their intended purpose,” HHS Deputy Secretary Jim O’Neill said in a statement on Tuesday.

The states, which include California, Colorado, Illinois, Minnesota and New York, argued in court filings that the federal government didn’t have the legal right to end the funds and that the new policy is creating “operational chaos” in the states.

U.S. District Judge Arun Subramanian at his nomination hearing in 2022.  (Tom Williams/CQ-Roll Call, Inc via Getty Images)

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In total, the states said they receive more than $10 billion in federal funding for the programs. 

HHS said it had “reason to believe” that the programs were offering funds to people in the country illegally.

‘TIP OF THE ICEBERG’: SENATE REPUBLICANS PRESS GOV WALZ OVER MINNESOTA FRAUD SCANDAL

The table above shows the five states and their social safety net funding for various programs which are being withheld by the Trump administration over allegations of fraud.  (AP Digital Embed)

New York Attorney General Letitia James, who is leading the lawsuit, called the ruling a “critical victory for families whose lives have been upended by this administration’s cruelty.”

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New York Attorney General Letitia James, who is leading the lawsuit, called the ruling a “critical victory for families whose lives have been upended by this administration’s cruelty.” (Win McNamee/Getty Images)

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Fox News Digital has reached out to HHS for comment.

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Washington National Opera is leaving the Kennedy Center in wake of Trump upset

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Washington National Opera is leaving the Kennedy Center in wake of Trump upset

In what might be the most decisive critique yet of President Trump’s remake of the Kennedy Center, the Washington National Opera’s board approved a resolution on Friday to leave the venue it has occupied since 1971.

“Today, the Washington National Opera announced its decision to seek an amicable early termination of its affiliation agreement with the Kennedy Center and resume operations as a fully independent nonprofit entity,” the company said in a statement to the Associated Press.

Roma Daravi, Kennedy Center’s vice president of public relations, described the relationship with Washington National Opera as “financially challenging.”

“After careful consideration, we have made the difficult decision to part ways with the WNO due to a financially challenging relationship,” Daravi said in a statement. “We believe this represents the best path forward for both organizations and enables us to make responsible choices that support the financial stability and long-term future of the Trump Kennedy Center.”

Kennedy Center President Ambassador Richard Grenell tweeted that the call was made by the Kennedy Center, writing that its leadership had “approached the Opera leadership last year with this idea and they began to be open to it.”

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“Having an exclusive relationship has been extremely expensive and limiting in choice and variety,” Grenell wrote. “We have spent millions of dollars to support the Washington Opera’s exclusivity and yet they were still millions of dollars in the hole – and getting worse.”

WNO’s decision to vacate the Kennedy Center’s 2,364-seat Opera House comes amid a wave of artist cancellations that came after the venue’s board voted to rename the center the Donald J. Trump and the John F. Kennedy Memorial Center for the Performing Arts. New signage featuring Trump’s name went up on the building’s exterior just days after the vote while debate raged over whether an official name change could be made without congressional approval.

That same day, Rep. Joyce Beatty (D-Ohio) — an ex officio member of the board — wrote on social media that the vote was not unanimous and that she and others who might have voiced their dissent were muted on the call.

Grenell countered that ex officio members don’t get a vote.

Cancellations soon began to mount — as did Kennedy Center‘s rebukes against the artists who chose not to appear. Jazz drummer Chuck Redd pulled out of his annual Christmas Eve concert; jazz supergroup the Cookers nixed New Year’s Eve shows; New York-based Doug Varone and Dancers dropped out of April performances; and Grammy Award-winning banjo player Béla Fleck wrote on social media that he would no longer play at the venue in February.

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WNO’s departure, however, represents a new level of artist defection. The company’s name is synonymous with the Kennedy Center and it has served as an artistic center of gravity for the complex since the building first opened.

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AOC accuses Vance of believing ‘American people should be assassinated in the street’

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AOC accuses Vance of believing ‘American people should be assassinated in the street’

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Democratic Rep. Alexandria Ocasio-Cortez is leveling a stunning accusation at Vice President JD Vance amid the national furor over this week’s fatal shooting in Minnesota involving an ICE agent.

“I understand that Vice President Vance believes that shooting a young mother of three in the face three times is an acceptable America that he wants to live in, and I do not,” the four-term federal lawmaker from New York and progressive champion argued as she answered questions on Friday on Capitol Hill from Fox News and other news organizations.

Ocasio-Cortez spoke in the wake of Wednesday’s shooting death of 37-year-old Renee Nicole Good after she confronted ICE agents from inside her car in Minneapolis.

RENEE NICOLE GOOD PART OF ‘ICE WATCH’ GROUP, DHS SOURCES SAY

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Members of law enforcement work the scene following a suspected shooting by an ICE agent during federal operations on January 7, 2026, in Minneapolis, Minnesota. (Stephen Maturen/Getty Images)

Video of the incident instantly went viral, and while Democrats have heavily criticized the shooting, the Trump administration is vocally defending the actions of the ICE agent.

HEAD HERE FOR LIVE FOX NEWS UPDATES ON THE ICE SHOOTING IN MINNESOTA

Vance, at a White House briefing on Thursday, charged that “this was an attack on federal law enforcement. This was an attack on law and order.”

“That woman was there to interfere with a legitimate law enforcement operation,” the vice president added. “The president stands with ICE, I stand with ICE, we stand with all of our law enforcement officers.”

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And Vance claimed Good was “brainwashed” and suggested she was connected to a “broader, left-wing network.”

Federal sources told Fox News on Friday that Good, who was a mother of three, worked as a Minneapolis-based immigration activist serving as a member of “ICE Watch.”

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Ocasio-Cortez, in responding to Vance’s comments, said, “That is a fundamental difference between Vice President Vance and I. I do not believe that the American people should be assassinated in the street.”

But a spokesperson for the vice president, responding to Ocasio-Cortez’s accusation, told Fox News Digital, “On National Law Enforcement Appreciation Day, AOC made it clear she thinks that radical leftists should be able to mow down ICE officials in broad daylight. She should be ashamed of herself. The Vice President stands with ICE and the brave men and women of law enforcement, and so do the American people.”

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